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FARO Technologies

Nasdaq:FARO
Snowflake Description

Excellent balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FARO
Nasdaq
$883M
Market Cap
  1. Home
  2. US
  3. Tech
Company description

FARO Technologies, Inc. designs, develops, manufactures, markets, and supports software driven three-dimensional (3D) measurement and imaging solutions. The last earnings update was 15 days ago. More info.


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FARO Share Price and Events
7 Day Returns
-3.2%
NasdaqGS:FARO
-6.6%
US Electronic
-3.9%
US Market
1 Year Returns
-4.7%
NasdaqGS:FARO
-0%
US Electronic
1.4%
US Market
FARO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
FARO Technologies (FARO) -3.2% -10.3% 8% -4.7% 54.4% 22.7%
US Electronic -6.6% -9.3% -1.3% -0% 60.1% 56.1%
US Market -3.9% -3.6% 1.8% 1.4% 35.8% 40.8%
1 Year Return vs Industry and Market
  • FARO underperformed the Electronic industry which returned -0% over the past year.
  • FARO underperformed the Market in United States of America which returned 1.4% over the past year.
Price Volatility
FARO
Industry
5yr Volatility vs Market
Related Companies

FARO Value

 Is FARO Technologies undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of FARO Technologies to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for FARO Technologies.

NasdaqGS:FARO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:FARO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Electronic Unlevered Beta Simply Wall St/ S&P Global 1.06
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.06 (1 + (1- 21%) (2.36%))
1.053
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.05
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.053 * 5.96%)
9.01%

Discounted Cash Flow Calculation for NasdaqGS:FARO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for FARO Technologies is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:FARO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.01%)
2019 23.30 Analyst x1 21.37
2020 25.41 Analyst x1 21.39
2021 27.16 Est @ 6.88% 20.97
2022 28.69 Est @ 5.64% 20.32
2023 30.06 Est @ 4.76% 19.53
2024 31.31 Est @ 4.15% 18.66
2025 32.47 Est @ 3.73% 17.75
2026 33.59 Est @ 3.43% 16.85
2027 34.67 Est @ 3.22% 15.95
2028 35.73 Est @ 3.07% 15.08
Present value of next 10 years cash flows $187.87
NasdaqGS:FARO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $35.73 × (1 + 2.73%) ÷ (9.01% – 2.73%)
$584.65
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $584.65 ÷ (1 + 9.01%)10
$246.76
NasdaqGS:FARO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $187.87 + $246.76
$434.63
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $434.63 / 17.33
$25.08
NasdaqGS:FARO Discount to Share Price
Calculation Result
Value per share (USD) From above. $25.08
Current discount Discount to share price of $50.94
= -1 x ($50.94 - $25.08) / $25.08
-103.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of FARO Technologies is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for FARO Technologies's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are FARO Technologies's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:FARO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.27
NasdaqGS:FARO Share Price ** NasdaqGS (2019-05-15) in USD $50.94
United States of America Electronic Industry PE Ratio Median Figure of 91 Publicly-Listed Electronic Companies 19.36x
United States of America Market PE Ratio Median Figure of 3,087 Publicly-Listed Companies 17.79x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of FARO Technologies.

NasdaqGS:FARO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:FARO Share Price ÷ EPS (both in USD)

= 50.94 ÷ 0.27

188.85x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • FARO Technologies is overvalued based on earnings compared to the US Electronic industry average.
  • FARO Technologies is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does FARO Technologies's expected growth come at a high price?
Raw Data
NasdaqGS:FARO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 188.85x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
64.9%per year
United States of America Electronic Industry PEG Ratio Median Figure of 58 Publicly-Listed Electronic Companies 1.3x
United States of America Market PEG Ratio Median Figure of 2,113 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NasdaqGS:FARO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 188.85x ÷ 64.9%

2.91x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • FARO Technologies is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on FARO Technologies's assets?
Raw Data
NasdaqGS:FARO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $21.75
NasdaqGS:FARO Share Price * NasdaqGS (2019-05-15) in USD $50.94
United States of America Electronic Industry PB Ratio Median Figure of 141 Publicly-Listed Electronic Companies 2.03x
United States of America Market PB Ratio Median Figure of 5,195 Publicly-Listed Companies 1.83x
NasdaqGS:FARO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:FARO Share Price ÷ Book Value per Share (both in USD)

= 50.94 ÷ 21.75

2.34x

* Primary Listing of FARO Technologies.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • FARO Technologies is overvalued based on assets compared to the US Electronic industry average.
X
Value checks
We assess FARO Technologies's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electronic industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electronic industry average (and greater than 0)? (1 check)
  5. FARO Technologies has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

FARO Future Performance

 How is FARO Technologies expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
64.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is FARO Technologies expected to grow at an attractive rate?
  • FARO Technologies's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • FARO Technologies's earnings growth is expected to exceed the United States of America market average.
  • FARO Technologies's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:FARO Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:FARO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 64.9%
NasdaqGS:FARO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 8.8%
United States of America Electronic Industry Earnings Growth Rate Market Cap Weighted Average 14.4%
United States of America Electronic Industry Revenue Growth Rate Market Cap Weighted Average 6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:FARO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:FARO Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 606 1
2022-12-31 554 1
2021-12-31 516 55 54 2
2020-12-31 475 34 30 5
2019-12-31 424 36 15 5
NasdaqGS:FARO Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 404 16 5
2018-12-31 404 6 5
2018-09-30 397 16 -12
2018-06-30 388 15 -8
2018-03-31 372 7 -13
2017-12-31 361 10 -15
2017-09-30 346 8 0
2017-06-30 336 5 0
2017-03-31 331 24 7
2016-12-31 326 38 11
2016-09-30 325 49 16
2016-06-30 318 57 14

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • FARO Technologies's earnings are expected to grow significantly at over 20% yearly.
  • FARO Technologies's revenue is expected to grow by 8.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:FARO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from FARO Technologies Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:FARO Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 3.02 3.02 3.02 1.00
2020-12-31 1.63 2.09 0.98 4.00
2019-12-31 0.86 1.02 0.68 4.00
NasdaqGS:FARO Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.27
2018-12-31 0.29
2018-09-30 -0.70
2018-06-30 -0.46
2018-03-31 -0.75
2017-12-31 -0.87
2017-09-30 0.01
2017-06-30 -0.03
2017-03-31 0.39
2016-12-31 0.67
2016-09-30 0.98
2016-06-30 0.86

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • FARO Technologies is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess FARO Technologies's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
FARO Technologies has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

FARO Past Performance

  How has FARO Technologies performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare FARO Technologies's growth in the last year to its industry (Electronic).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • FARO Technologies's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • FARO Technologies has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • FARO Technologies has become profitable in the last year making it difficult to compare the US Electronic industry average.
Earnings and Revenue History
FARO Technologies's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from FARO Technologies Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:FARO Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 404.41 4.63 165.21 40.24
2018-12-31 403.63 4.93 164.57 39.71
2018-09-30 397.21 -11.89 159.94 38.21
2018-06-30 387.75 -7.77 156.63 37.25
2018-03-31 372.19 -12.60 153.12 36.32
2017-12-31 360.92 -14.52 147.35 35.38
2017-09-30 346.19 0.09 140.91 34.31
2017-06-30 335.54 -0.45 135.14 33.22
2017-03-31 331.40 6.57 126.20 31.39
2016-12-31 325.58 11.11 120.68 30.13
2016-09-30 325.21 16.45 118.53 29.60
2016-06-30 318.12 14.47 115.18 27.50
2016-03-31 323.36 15.23 115.35 27.54
2015-12-31 317.55 12.81 116.21 26.69
2015-09-26 330.37 15.05 119.54 27.50
2015-06-27 340.11 27.16 120.24 29.03
2015-03-28 338.39 29.34 119.70 28.44
2014-12-31 341.83 33.65 116.14 27.61
2014-09-27 327.57 30.79 112.26 25.68
2014-06-28 313.52 24.61 108.01 24.21
2014-03-29 299.79 21.91 103.97 22.72
2013-12-31 291.78 21.51 102.29 22.41
2013-09-28 282.56 21.09 97.80 20.75
2013-06-29 275.10 19.72 95.58 18.93
2013-03-30 273.54 20.82 95.01 18.30
2012-12-31 273.40 23.00 93.51 17.58
2012-09-29 269.81 24.63 92.90 17.06
2012-06-30 273.88 27.39 92.60 16.58

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • FARO Technologies has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • FARO Technologies used its assets less efficiently than the US Electronic industry average last year based on Return on Assets.
  • FARO Technologies's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess FARO Technologies's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electronic industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
FARO Technologies has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

FARO Health

 How is FARO Technologies's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up FARO Technologies's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • FARO Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • FARO Technologies's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of FARO Technologies's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 14.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from FARO Technologies Company Filings, last reported 1 month ago.

NasdaqGS:FARO Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 376.59 20.81 135.53
2018-12-31 376.61 0.00 133.58
2018-09-30 370.96 0.00 134.97
2018-06-30 362.70 0.00 144.55
2018-03-31 368.33 0.00 149.78
2017-12-31 352.07 0.00 151.96
2017-09-30 356.73 0.00 140.81
2017-06-30 349.49 0.00 139.56
2017-03-31 344.18 0.00 148.77
2016-12-31 339.66 0.00 149.11
2016-09-30 345.60 0.00 153.31
2016-06-30 341.60 0.00 176.52
2016-03-31 339.34 0.00 163.23
2015-12-31 327.64 0.00 150.35
2015-09-26 346.09 0.00 160.96
2015-06-27 349.01 0.00 155.57
2015-03-28 341.25 0.00 161.06
2014-12-31 343.85 0.00 174.28
2014-09-27 337.01 0.01 181.91
2014-06-28 331.43 0.01 194.83
2014-03-29 323.77 0.01 187.71
2013-12-31 315.95 0.00 189.62
2013-09-28 303.90 0.02 181.90
2013-06-29 293.98 0.03 176.30
2013-03-30 288.76 0.05 169.59
2012-12-31 282.74 0.06 158.22
2012-09-29 272.87 0.08 145.49
2012-06-30 266.27 0.10 139.74
  • FARO Technologies's level of debt (5.5%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 5.5% today).
  • Debt is well covered by operating cash flow (77.8%, greater than 20% of total debt).
  • FARO Technologies earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess FARO Technologies's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. FARO Technologies has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

FARO Dividends

 What is FARO Technologies's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from FARO Technologies dividends. Estimated to be 0% next year.
If you bought $2,000 of FARO Technologies shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate FARO Technologies's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate FARO Technologies's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:FARO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United States of America Electronic Industry Average Dividend Yield Market Cap Weighted Average of 37 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1997 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:FARO Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 1.00
2020-12-31 0.00 1.00
2019-12-31 0.00 1.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as FARO Technologies has not reported any payouts.
  • Unable to verify if FARO Technologies's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of FARO Technologies's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as FARO Technologies has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of FARO Technologies's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess FARO Technologies's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can FARO Technologies afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. FARO Technologies has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

FARO Management

 What is the CEO of FARO Technologies's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Simon Raab
COMPENSATION $2,703,921
AGE 65
TENURE AS CEO 3.4 years
CEO Bio

Dr. Simon Raab, Ph.D., co-founded FARO Technologies, Inc. in 1982 and has been its Chief Executive Officer and President since December 4, 2015. Dr. Raab served as Co-Chief Executive Officer of FARO Technologies, Inc. since January 2006 until December 2006. Dr. Raab, previously served as the Chief Executive Officer of FARO Technologies, Inc. from 1982 to January 2006 and President from 1986 to November 15, 2004. Dr. Raab was the Chairman of FARO Technologies, Inc. since 1982. He serves as the Chairman of Novim (www.novim.org). He serves as Chairman of the Board at LungLife AI, Inc. (Cynvenio Biosystems, Inc) and served as its Vice-Chairman of the Board. Dr. Raab serves as Co-Chairman of TrueVision Systems, Inc. He has been a Director of Cynvenio Biosystems Inc. since August 03, 2011. He holds more than 80 US and foreign patents in the fields of 3D coordinate measuring systems, biomaterials and Medical Diagnostics. Dr. Raab holds a Ph.D. degree in Mechanical Engineering from McGill University, Montreal, Canada, a Masters of Engineering Physics from Cornell University and a Bachelor of Science in Physics with a minor in Biophysics from the University of Waterloo, Canada.

CEO Compensation
  • Simon's compensation has increased in line with FARO Technologies recently becoming profitable.
  • Simon's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the FARO Technologies management team in years:

2.4
Average Tenure
44
Average Age
  • The tenure for the FARO Technologies management team is about average.
Management Team

Simon Raab

TITLE
Co-Founder
COMPENSATION
$3M
AGE
65
TENURE
3.4 yrs

Bob Seidel

TITLE
Chief Financial Officer
COMPENSATION
$616K
AGE
43
TENURE
2.4 yrs

Kathleen Hall

TITLE
Chief Operating Officer
COMPENSATION
$955K
AGE
57
TENURE
3.1 yrs

Jody Gale

TITLE
Senior VP
COMPENSATION
$679K
AGE
43
TENURE
5.3 yrs

Katrona Tyrrell

TITLE
Chief People Officer
COMPENSATION
$524K
AGE
55
TENURE
2.3 yrs

Janet D'Anjou

TITLE
Vice President of Finance and Corporate Development
COMPENSATION
$294K
AGE
42
TENURE
2.1 yrs

Yazid Tohme

TITLE
Chief R&D Officer
AGE
44
TENURE
0.3 yrs
Board of Directors Tenure

Average tenure and age of the FARO Technologies board of directors in years:

13.6
Average Tenure
63
Average Age
  • The average tenure for the FARO Technologies board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

John Donofrio

TITLE
Chairman & Lead Director
COMPENSATION
$230K
AGE
56

Simon Raab

TITLE
Co-Founder
COMPENSATION
$3M
AGE
65
TENURE
37.3 yrs

Stephen Cole

TITLE
Independent Director
COMPENSATION
$196K
AGE
66
TENURE
19.3 yrs

John Caldwell

TITLE
Independent Director
COMPENSATION
$176K
AGE
68
TENURE
17.3 yrs

Lynn Brubaker

TITLE
Independent Director
COMPENSATION
$170K
AGE
60
TENURE
9.8 yrs

Jeff Graves

TITLE
Director
COMPENSATION
$167K
AGE
57
TENURE
1.4 yrs

Yuval Wasserman

TITLE
Director
COMPENSATION
$170K
AGE
63
TENURE
1.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
31. Aug 18 Sell Simon Raab Individual 29. Aug 18 30. Aug 18 -15,000 $68.00 $-1,019,690
17. Aug 18 Sell Simon Raab Individual 15. Aug 18 17. Aug 18 -15,000 $66.36 $-992,489
01. Aug 18 Sell Stephen Cole Individual 30. Jul 18 30. Jul 18 -10,000 $69.42 $-694,155
01. Aug 18 Sell John Donofrio Individual 30. Jul 18 31. Jul 18 -4,061 $67.92 $-273,423
18. Jun 18 Sell John Donofrio Individual 14. Jun 18 14. Jun 18 -1,718 $54.91 $-94,341
X
Management checks
We assess FARO Technologies's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. FARO Technologies has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

FARO News

Simply Wall St News

Is It Time To Consider Buying FARO Technologies, Inc. (NASDAQ:FARO)?

led the NASDAQGS gainers with a relatively large price hike in the past couple of weeks. … With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … However, could the stock still be trading at a relatively cheap price.

Simply Wall St -

Should FARO Technologies, Inc.’s (NASDAQ:FARO) Weak Investment Returns Worry You?

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

Simply Wall St -

FARO Technologies, Inc. (NASDAQ:FARO) Delivered A Weaker ROE Than Its Industry

We'll use ROE to examine FARO Technologies, Inc. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.013 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Does FARO Technologies, Inc. (NASDAQ:FARO) Have A Volatile Share Price?

Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider. … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St -

Does FARO Technologies, Inc.'s (NASDAQ:FARO) CEO Pay Reflect Performance?

Simon Raab has been the CEO of FARO Technologies, Inc. … This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Simon Raab's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Is FARO Technologies, Inc.'s (NASDAQ:FARO) Balance Sheet A Threat To Its Future?

(NASDAQ:FARO), which has zero-debt on its balance sheet, can maximize capital returns by increasing debt due to its lower cost of capital. … Is FARO growing fast enough to value financial flexibility over lower cost of capital … Debt capital generally has lower cost of capital compared to equity funding.

Simply Wall St -

How Much Are FARO Technologies, Inc. (NASDAQ:FARO) Insiders Taking Off The Table?

So we'll take a look at whether insiders have been buying or selling shares in FARO Technologies, Inc. … In total, FARO Technologies insiders sold more than they bought over the last year. … It is certainly not great to see that insiders have sold shares in the company

Simply Wall St -

What Should Investors Know About FARO Technologies Inc's (NASDAQ:FARO) Return On Capital?

and looking to gauge the potential return on investment in FARO Technologies Inc (NASDAQ:FARO). … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … Therefore, looking at how efficiently FARO Technologies is able to use capital to create earnings will help us understand your potential return.

Simply Wall St -

Does FARO Technologies Inc's (NASDAQ:FARO) CEO Salary Compare Well With Others?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Simon Raab's Compensation Compare With Similar Sized Companies. … Our data indicates that FARO Technologies Inc is worth US$791m, and total annual CEO compensation is US$2.5m.

Simply Wall St -

How Financially Strong Is FARO Technologies Inc (NASDAQ:FARO)?

The direct benefit for FARO Technologies Inc (NASDAQ:FARO), which sports a zero-debt capital structure, to include debt in its capital structure is the reduced cost of capital. … Is financial flexibility worth the lower cost of capital. … Debt capital generally has lower cost of capital compared to equity funding

Simply Wall St -

FARO Company Info

Description

FARO Technologies, Inc. designs, develops, manufactures, markets, and supports software driven three-dimensional (3D) measurement and imaging solutions. It operates through three segments: 3D Manufacturing, Construction BIM, and Emerging Verticals. The company offers FaroArm, a combination of a portable articulated measurement arm, a computer, and CAM2 software programs; and FARO ScanArm, a FaroArm equipped with a hard probe and non-contact laser line probe to measure products. It also provides FARO Design ScanArm 2.5C, a portable lightweight 3D ScanArm; FARO Prizm, a full-color laser line probe with 3D design and modeling software; FARO Laser Tracker that combines a portable laser measurement tool, a computer, and CAM2 software programs; FARO Cobalt Array Imager, a metrology-grade structured light imager; FARO Tracer, which projects a laser line onto a surface or object; and FARO Focus laser scanner to measure and collect a cloud of data points. In addition, the company offers FARO Scanner Freestyle3DX, a handheld scanner that documents rooms, structures, and objects in 3D, as well as creates high-definition point clouds; FARO ScanPlan, a handheld mapper that captures 2D floor plans; FARO Digi-Cube, a digital auto-controlled scan head for integration into various laser scanning products; and FARO Software, a proprietary computer-aided design-based measurement and laser scanner software. FARO Technologies, Inc. offers its products for manufacturing, industrial, architecture, surveying, building information modeling, construction, public safety forensics, cultural heritage, dental, and other applications. The company sells its products in Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Malaysia, Mexico, the Netherlands, Poland, Portugal, Singapore, South Korea, Spain, Sweden, Switzerland, Thailand, Turkey, the United Kingdom, and the United States. FARO Technologies, Inc. was founded in 1981 and is headquartered in Lake Mary, Florida.

Details
Name: FARO Technologies, Inc.
FARO
Exchange: NasdaqGS
Founded: 1981
$882,720,412
17,328,630
Website: http://www.faro.com
Address: FARO Technologies, Inc.
250 Technology Park,
Lake Mary,
Florida, 32746,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS FARO Common Stock Nasdaq Global Select US USD 18. Sep 1997
DB FT1 Common Stock Deutsche Boerse AG DE EUR 18. Sep 1997
Number of employees
Current staff
Staff numbers
1,862
FARO Technologies employees.
Industry
Electronic Equipment and Instruments
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/16 01:22
End of day share price update: 2019/05/15 00:00
Last estimates confirmation: 2019/05/15
Last earnings filing: 2019/05/01
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.